tv FOX News Sunday With Chris Wallace FOX July 24, 2011 4:00pm-5:00pm PDT
>> i'm chris wallace. it is the dog days of summer in washington . the grand bargain is now the great divide. the country's top leaders rushed to restart negotiations that have broken down. the debt ceiling deadline draws near. is the agreement still possible. we'll sit down with the administration's point man treasurey secretary tim geithner and the president tells congress to come up with its own plann. and the republicans are making an offer democrat can refuse.
we'll find out before the financial markets open in asia from the top public negotiator speaker john boehner. geithner and boehner on fox news sunday. what happens if there is no deal? will there be a market melt down. we'll ask the sunday panel about the political and policy realities. all right now on fox news sunday. hello again from fox news in washington. it is nine days and counting until the u.s. hits the debt limitt. can the nation's leaders come up with a last ditch plan to raise the debt ceiling. we'll talk to john boehner in a moment. treasury geithner, welcome to fox news sunday. >> good to see you, chris. >> chris: congressional
republicans are working on a two-stage man to cut spending right away and raise the debt ceiling next year and then a mechanism for more cuts if approved the debt ceiling would be raised in, will the president pass that into law? >> we have to lift the default from the economy. for the next 18 months. we have to take that threat off of the table through the election. but we also want to try to make sure we come together and make tough choices and lock in long-term savings. we need to do those two things so the economy is stronger and getting more americans back to work. >> chris: the boehner plan will the president veto that? >> there are two plans on the
table right now. one is the frame work and speaker of the house have been talking about. >> they are talking still. both the president and the speaker believe that the best thing we can do is put together a contribution. >> chris: you are saying the so-called grand bargain is still alive. >> i am not saying that. there are two approaches. comprehensive balanced entitlement savings and secure medicaid and medicare for the future help us solve the problem. but there is also talk about a plan that senator mcconnell and reid put forward that takes default off of the table and put in place a special committee with special power to move legislation to achieve that same outcome. you can solve the problem a lot of different ways. two keys things are, take default off of the table through the election and put in place a frame work of tough reforms and
forces congress to act. we don't want to fall behind the curve and important that we don't just take default off of the table but demonstrate to the world. >> chris: a plan that only guarantees cuts and a debt ceiling early next year? >> makes no sense. >> chris: the president will veto. >> let me explain why. we started the process seven monthses ago. we are running out of runway. i never thought they would take it this close to the edge and let politics get in the way of demonstrating the will of paying our bills on time. it has taken us six or seven months. the idea seven months lifting the default from the american economy irresponsible approach. we don't think that makes sense.
>> chris: secretary geithner, here's what i don't understand. i understand trying to get past 20 12 and there are political questions. if i may ask the questions, sir. there are political questions, what you are saying hitting the debt ceiling now just to make sure you don't possibly hit the debt ceiling next year? you can get a thing to kick the can down the road for six monthings why are you not grabbing it like a life preserver. >> it is the specter of default in the future. we'll not end up there. the speaker of the house and senator mcconnell are not going to let the country default and the members of their party and some of them praying for default, they will not let that happen. i commend them for that. we are trying to make sure we lift the threat of default from
the american economy for the next 18 months and we are trying to put in place a frame work that forces congress to make tough choices. but the type of savings that we need to get our house in order. >> chris: mow do you think the market will react if speaker boehner announces short-term cuts and increase and mechanism for longer cuts and debt increase next year? >> the markets will look at not just whether we successfullyy avoided the default crisis which i am confident we will. but lift the cloud of default and quality of savings and reforms that we put in place so we demonstrate to the world and american people we will go back to live in our means. from the beginning, it is clear that you will need democrats and republicans in both houses of congress to get this done. you cannot do it with just republicans in the house.
you have to go through the senate. the speaker understands that and the senate understands that . that's why you heard yesterday, the leaders came together to try to figure out today what type of arrangement is going to work and get to both houses that the president can sign. >> chris: how will the markets react in asia this afternoon and tomorrow morning if there is no plan at all. >> you can't tell what the marks will do. so far the markets are confident. >> chris: it will run out at some point. >> again, we are close to the deadline and the longer the politicians take it the more risk people look and wonder if this will work again and leaderships have to demonstrate a way to find a compromise to make this work. >> chris: i will ask you about one part of the negotiations up to this moment. peeker boehner's office agreed
with you on a deal to raise revenue 800 billion over the next decade and the president moved the goal post in the course of the week by demanding 400 billion dollars. did you have an agreement with speaker boehner last sunday in a meeting in bill dally's office. >> we did not, but we are close. >> chris: did not have an agreement. >> at that point we were apart on two important things. one is, what type of revenue we'll get through tax reform as the objective. that's the thing mentioned and the debt saving that speaker boehner thought we should put in the deal on med medicaid. >> chris: the 800 billion we had agreed on. >> you know negotiations are not done until it is done. we were close but not done yet. there is a chance, you should
ask the speaker that may be the best way to get the votes. and the president and speaker does, the frame work like that would be the best. but we have options. >> chris: you keep bringing up the grand bargain. >> again, the president of the united states believes the best thing for the economy is put in place a comprehensive savings reform that demonstrate to the world we can get the fiscal house in order. we can getty congress back in order and get americans back to work. >> chris: i am going to ask you a straight question . the president said friday. he talked to you about the adjustments in the case of default. you met with fed chairman bernanke and the head of the federal reserve. what is your plan. >> your plan is to get the debt ceiling raised on time and this
will happen this time, too. we don't have the ability to protect the american people from the consequences of congress not taking that action. >> chris: the president said you discussed what adjustments will have to be made. >> this is the united states of america. we write 80 million checks a month and there are millions of americans that depend on the checks coming on time. not just military, but people who get social security benefits and medicare and medicaid benefits. we can't put those payments at risk and we don't have the ability to limit the damage on them. >> chris: you said it for months and it made more sense in april than when you said it in july. what is your plan. it would be irresponsible not to have a plan. what is it. >> we'll mitigate the damage. but congress will be putting 80 million checks, payments at risk of delay and that would not be
responsible. >> chris: have you decided who will be paid. >> everyone who had my job and the president's job have had to do it over and over again . they reached the same judgments. the only option for the country and i believe peeker boehner and mcconnell understand this. there is no other option available. >> chris: i will ask one last time and then move on have you made plans as to who will get their checks. >> chris, we are doing the responsibility thing. only congress has the ability to make sure the payments get paid on time . only congress has the ability to demonstrate that we will pay the bills and meet our obligations on time. >> chris: the president talks about the importance of getting serious about the national debt. i will on look at the record. in december, the president's debt commission called for four trillion in cuts. mr. obama didn't endorse any of them.
in january in the state of the union speech he didn't mention the word debt until 35 minutes in. in february he proposed to cut the budget over 410 billion . the senate rejected that 97-nothing. he entered a plan so fuzzy, the head of the ceo said we don't estimate speeches. meanwhile, the republicans have offered several specific planns to deal with the national debt. >> planns that would devastate the economy. >> chris: in your opinion. they had a plan. the ryan plan and cut, cap and balance and you had no plan. >> in april the president mutt put out four trillion. >> his own director said it is so fuzzy. >> he's pent every day negotiating with the republican leaders and democrat leaders on a frame work that is pass and work.
>> chris: why you have no plan. >> that is not fair or true. >> chris: the head of the budget office said we can't score a peach. >> let's do it your way. the republican plan that passed the house of rep representative would require beneficenceys on medicare to pay $6500 ai - a year more for medicare benefits than today. why are they doing that? they are doing that. i think the speaker -- they want to preserve the top tax. i give them credit for this. if you try to balance our budget without revenues and taxes, then you are forced to put in place exceptionally harsh cuts for medicare and medicaid.
remember this country, this great nation with our great resources today, one in eight americans are eligible for food stamps. 47 percent of the americans born today are born to families eligible for medicaid. you can ask the american people to balance this budget on the backs of the elderly or most vulnerable through tax reform is fundmentallyy unacceptable and they knew it and it is not going to become law and we made so much progress with the republicans for a balanced approach and i give the speaker a lot of credit for that. >> chris: turning to the time we have left to the economy. you wrote for the new york times. >> that was not our headline. >> chris: put it up on the screen if we can. you did say we are on the path back to growth.
those are your words and do you stand by them? >> absolutely. the american economy was strengthening. >> chris: you were talking about that week. >> it was right. >> chris: if i may, sir, look at the record, since president obama took office. the nation has lost two and half million jobs and unemployment from 7.8 to 9.2 percent x. goldman saches now projects by the end of 2012 unemployment will be over 8 percent. that is your path to growth? >> chris, the american economy is suffering from the crisis that the president inherited. we have been growing a million and half . we have had job creation and more than last two recoveriys.
things are healing. it will take more time throw. growth is slower than we would like and so important that we get the budget stuff done because we want congress to turn back the business of doing things that are stronger. we are in a much stronger position than we were three months ago and 18 monthses ago. >> chris: you think stronger economy. >> let me finish. a stronger position in the economy three or four months ago when you were growing hundreds of thousands of jobs? >> absolutely. with time more americans are getting back to work and american businesses are investing again and exports are growing stronger. oil prices went up and we have had bad weather. state and local governments are tightening their belts. japan had a catastrophic crisis, those things cause growth to slow .
spectrum of default is hurting the confidence o average americans. it is important for them to take it off of the table as long as they can. >> chris: one last question. you talk about growth. i want to put up growth numbers and going forward. gdp growth is 1.9 percent and goldman saches scaled back the estimate for growth from two percent to 1.5 percent and the third quarter from three and a quarter percent to 2.5 percent. that is an idea of an economy growing stronger. >> it is for reasons that we said. if congress makes -- if they lift the cloud of dysfunction of default off of the american economy then it is turn back and make the economy stronger. the economy is healing and recovering and we'll get through this and it will take more time.
it is so important as the eyes of the world are on us that congress makes the tough stitions now. >> chris: is 8.3 percent unemployment 15 months from now. is that jiving with your analysis? >> chris, it depends on how fast we grow and the confidence that the leaders of congress. >> chris: your projection is 8.2 -- >> i don't do forecasting, but the best forecasters said economy will grow going forward. i think that is likely, but it is going to take us a long time to heal the damage caused by the crisis. it will take us time. >> chris: secretary geithner, thank you for coming in today. we'll watch what is coming up with this week. >> good to be here. >> chris: will the republicans say yes to anything.
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is after a new republican majority and all of the discussion is about how many trillions of dollars we are going to cut. this is a remarkkable change here in washington d.c.. >> chris: all right. having said that. you had a meeting and a conference call with the republican leaders in which you said, you want to be able to announce a frame work of a plan before the markets in asia opened. are you going to announce that plan? >> i will work with my congressional colleagues in both partis and house republican conference to try to develop a frame work within the cut, cap and balance effort that the house passed this past week. i do believe that such a frame work could come together. but it is not in place as we sit here. >> will you announce a republican plan or will you only announce a plan if you buy in from democrat leaders on capitol hill. >> i think a preferable pass
would be a bipartisan plan that involves all of the leaders, but it is too early to decide if that is possible. >>reporter: you heard the reaction from secretary geithner, speaking for the white house and congressional democrats and this idea that i know you and the senate republicans are working on of a two-stage process whether it would be trillion plus worth of cuts and debt limitt inquiries until early year and araise the debt ceiling is unacceptable. >> it will be a two-stage process. it is not physically possible to do it all in one step. chris, i know the president is worried about the next election. but shouldn't he be worried about the country? we have a budget deficit of one and half trillion and borrowing 42 cents on every dollar we
spend and 14 and half trillion dollar national debt. it is time to get serious about stopping the spending here in washington d.c.. >> chris: are you suggesting you might pass a short-term house in dare the senate and white house to block it? >> chriss, this is about what is doable in the lenth hour. remember this. the house has done its work. we passed a budget and passed a plan. >> chris: i know they have been defeated. >> and not one time in the whole process has the senate democrats or white house put a or even a plan out there. conversations i have with the president in case the senate didn't pass the cut, cap and balance, there's never any plan from the white house. the whole plan came from us and we laid out the framework and at some point they have to lay their cards on the table. >> chris: you are the one in the
conference call yesterday we have to do something before the markets open in asia this afternoon. monday morning in asia. how do you think the market will act if the headlines in the end of the day and tomorrow morning's newspapers are no deal? >> the american people are asking where the jobs and while asia is important this is about american jobs and american economy. if we don't do something seriou about controlling our debt, it is hanging over our entire economy like a wet blanket. that's why i believe taking serious steps toward solving the problem will breed more confidence in your economy and help create jobs here. i will do my best to work with the congressional colleagues and house republican colleagues to put a frame work and remove the wet blanket. >> chris: i want to say this again. frame work out today, you would
not do that unless you have democrat buy in? >> i would prefer to have a bipartisan approach to solve the problem. if that is not possible. i and republican colleagues are prepared to move on our own. >> chris: today. >> today. >> chris: cuts now and debt limit early increase next year. >> i don't want to get into all of the details. if i have the details and ready to announce it. i would be happy to share it with you. we are not ready yet. >> chris: the s&p will consider downgrading our deal even with a short-term deal but washington inicates they are not serious. isn't that a concern that the markets could look at a trilionn dollar cut and a short deal that kicks the can down the year.
isn't that a problem. >> it is important to deal with the long-term problem. washington spending is out of control . what happened over the last two years showed how much out of control. trillion dollar stim tim plan and a health care plan that we can't afford and all of the extra spending that has not worked and the spending binge has to stop and our efforts all year have focused on trying to stop it . as i look at trying to put together a plan with my colleagues, i am going to work with them in the frame work of cut, cap and balance. those are the three things that have to happen if we are instilling confidence in our economy. >> chris: when you say cut, cap and balance. the senate tabled the idea of a balanced budget idea. you are not going to insist on that again. >> i continue to believe that a balanced budget amendment is the greatest to bring washington
under control. >> chris: you are not going to make that a condition. >> i will continue to develop a fame work within the principles of cut, cap and balance. >> chris: i want to go over one part of the grand bargain that you negotiated with the president and the white house and went over this with secretary geithner. you said in your friday news conference that you agreed to $800 billion in new ref new last weekend in a meeting with secretary geithner and the president moved the goal post. you heard his response. we really didn't have a deal. did you have a deal with secretary geithner. >> last sunday i thought there was an agreement of $800 new revenue coming from a flatter and fairer tax system to get our economy moving again and employ more americans and bring revenue to the federal government. i believed that we could get there. on tuesday, the president said they needed more revenue.
mr. cantor and i told the president no. wednesday they said they needed more revenue. we said no. thursday, we need more revenue. we said no. friday afternoon when the president called me and demanded 400 billion in more revenue, there's no way to get it out of tax reform other than raising taxes on the american people. it was time for me to step back and begin to figure out what is the path forward. it was not just the additional revenues that the president wanted. their willingness to make fundmental entitlement reform and cuts in spending they continued to resist in any turn. i finally decided it was time to say no . time to reachh out to my fellow congressional leaders and my house republican colleagues and develop a congressional plan to deal with this problem. >> chris: i want to pick up on one part of this because it is causing heart burn for frankly house republicans.
what you are saying, despite yourr promise not to raise tax revenue you agreed to 800 dollars more through tax reform and lowering all of the rates and closing loop holes and ending deductions. you agreed to 800 billion. >> yes, i thought we could get new revenues oust a growing economy and has more americans work paying taxes and a fairer flatter tax code means a more efficient system of people understanding what their tax obligations were and our ability to collect what is due . between the two, i believed that we could accomplish 800 billion without raising taxings. >>reporter: that was raising taxes. >> it was not raising taxes. if you look at how it was outlined, we agreed the taxes would have to be reduced from the current law and policy all
the way down 2.7 or 8 trillion from what the current law is. it is $800 billion over the current policy is, i thought we could achieve that amount of money through fundmental tax reform on the corporate side and personal side. >> chris: there was an interesting development today. a couple of times secretary geithner raised the possibility of grand bargain and some administration officials would boehner go back and accept the $800 billion dollars? it may be pretty hard to put humpty dumpty back together again. my last offer is still out there. i have never taken my last offer off of the table and they never agreed to my last offer. >> chris: your $800 in revenue and entitlement and spending cuts still on the table. >> it is still on the table.
they know what my last offer is. a better path forward at this moment is working with my bipartisan congressional leaders and republicans in the house to put together a process that is doable. >> chris: there is considerable criticism among the house republicans and some of them will shake theirr head that you are too eag are for the grand bargain and eager with barack obama. >> i am here to do something on behalf of my country. i didn't want to be a speaker of the house because i needed a fancy job. i wanted to be speaker to lead the effortto do the right things for our country. we have a spending problem and i will tackle it in the biggest way i can because it is the right thing for the country. >> chris: even if causes heart burn in the house or caucus. >> it is right for the country.
>> chris: and said you and the president are from two different planets . what makes you seem to think that even now you can make a deal with this president with his views on trillions of dollars in spending and entitlements and taxes. >> i was born with the glass half full. it is trying to find common ground. i understand that the president believes we need bigger government and more spending. i believe in allowing the people to keep more money and best way to create jobs and grow the economy. it is like we came from two different planets. my job is to call for much more common ground to help move the counselry ahead. >> chris: democrats are saying . you heard tim geithner that you look bad with voters because you walked out of the twice -- talks
twice and you would risk default to protect the medicare and medicaid and not cut tax for the wealthy. >> i will not get involved in the sniping. i am interested in a solution to the problem we face. i don't want to see default or get close to it. >> chris: we are close to it now. >> it is bad for the economy and country. i am trying to find a common ground that is doable in the time remaining. >> chris: the last question, sir. according to your plan, how disappointed are you. as we understand now. a tril yen in spending cut in the short term. how disappointed are you that after month was talking and an urgent deadline that is it it seems the most washington can come up when you spend 46 trillion is one trillion in spending? >> after six months conversations with the president about doing the big deal, and
taking a big step in the right direction, it is pretty clear to me they are just not willing to do it and the next election matters more than what is right for the country. i am not worried about the next election. forget about the next election. if we do the right thing for the country, we'll not have to worry about who will get elected and who isn't. >> chris: speaker boehner, i want to thank you always coming in . we'll see how the world turns this week. >> we sure about well. >> chris: how the debt ceiling is playing out. what happens next. change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence.
>> i think one of the questions that the republican party has to ask itself is can they say yes to anything? it is time to get serious and i am confident that the bipartisan leaders in the congress can act. the white house gets more serious and we will. >> chris: president obama and speaker of the house john boehner in extraordinary news conference over the proposed grand bargain that fell apart. it is time for our group. brit hume, and a.b. stoddard of the hill newspaper. bill kristol of the weekly standard and political an left juan williams . juan has a book out "muzzled" and the assault of honest
debate. juan congratulations. i read the first chapter and didn't mention me but it was still very interesting. [laughte >> chris: i had a very carefully framed question, bret. you heard what geithner and boehner said. what do you make of it? >> it is striking that the house has acted and passed a plan and the senate has refused to take it up and vote it up or down. what you see here is a interesting combination of events, the president hasn't stated a position or set forth a scorable plan or any of that. and these house republicans have basically done that. and what you are seeing here, there is a peculliar double standard, because when the house
acts, everybody said i pass that and that won't pass. but the senate has done nothing to have them pass. they haven't passed a budget. >> chris: 97-zer on. >> they haven't done anything . every time the house acts, you can't pass, isn't it the time for somebody to step up with an alternative plan in and the thing that is striking about this, this is a close parallel to what happened in the clinton years when we had the partial government shut down and that pattern is similar. in that case, the republicans got all of the blame . i have a sense here, there is a sense of confidence among the democrats and the white house and congress that if we end up with this short of situation
where you simply have to close down parts of the government because there is no money, that the republicans will get the blame. that's what it looks like to me. >> chris: one difference from the partial government shut down. we have not exceeded a debt limit before which is unchartered territory in reaction of the markets, what is going to happen. >> that's what is so interesting. house speaker bone bone cut president obama out of the process and moved it to the hill and it is between the congressional leaders. he would like it to be bipartisan and if it can't be he will movomp we have pass said the debt increase and averted default, the democrats have no plan and if the president will not get serious. he is taking control where republicans had lost it for two weeks. at this point does he have 218 votes or something we don't know. the democrats position as
secretary geithner anything that doesn't get us in the next two years and leave the cloud of default over the fragile economy is going to lead to a downgrade by the rating's agency and interest rates hike up and more job loss and serious problems for our economy and we'll see what happens to the markets tomorrow and we'll see if that is a compelling message from the democrats to scare speaker boehner back to the table. he said i have a short term deal and something will come together in four days and i am sick of having discussions with the white house where they move the goal post. >> chris: what do you think will happen. boehner said one thing and another thing at one point. do you think that he is prepared to have the house pass the short-term deal of trillion dollars in cuts and kick the can down the road and go into it next year and a to lookk into it. you don't want default. this is a plan to keep you out
six months and dare the senate and dare the white house to veto it and blockk it? >> he would prefer to make a deal with senate democratic leader harry reid. they walked out and the speaker said i will convene a meeting with only democrat congressional leaders. i asked a aid. the white house always represented in the hill. no one. four congressional leaders alone. they have to decide . i think harry reid believes that president obama and secretary geithner are part of the problem and not part of the solution and they will now try to work out a deal and cut the president out. boehner would prefer to put a deal with reid and pelosi puts pressure. one trillion first with spending cuts and second one with half trillion and mostlyy pend entitlement cuts and revenue
cuts and do that in two stages and two votes and second vote guaranteed and markets don't get disrupted. they can do it as a house republican bill or in negotiation with the senate democrats here. big story is bipartisan willingness to walk away from president obama. last night after they heard the boehner plan. harry reed reedd and nancy pelosi democratic leader in the house said no. >> absolutely not. what they are saying is, i thought it was a revealing moment that you had with tim geithner. he thinks there is some republicans that are praying for default. that's his language and you get the idea that the white house to theeent that the bill was talking about the -- there is some republicans who are just stubborn and to making a deal
under circumstance because they don't want added revenue or tax hikes . we saw from the democrats, you talk about the white house. the democrats flew over to the white house to say what are you talking about. you are willing to make cut in medicare and medicaid and social security? you are putting our political fortunes at risk. you saw aarp and all engage theirr member to absolutelyy zoom in on congress with phone calls and lobbbying to say stop the president from giving up everything to the republicans. one lastt point here. i am amazed that you heard the speaker of the house said. we have moved the goal post in terms was a president who didn't want significant cuts and now willing to make significant cuts and republicans said we have won the fight and time to move on and not push the country over the edge. >> chris: that's one vieww. we'll take a breakk and continue
the conversation. one of the being things coming out from geithner and boehner, the grand bargain is not dead. when we come back, more on the debt crisis. rom sprint. its powerful tools help you work faster and smarter so you can get back to playing "angry birds." it lets you access business forms on the go, fire off e-mails with the qwerty keypad, and work securely around the world so you can get back to playing "angry birds." it's the android-powered phone that mixes business with pleasure. so let's get our work done, america, so we can all get back to playing "angry birds." the motorola expert from sprint. trouble hearing on the phone? visit sprintrelay.com. is it the new forty, i don't know. i probably feel about thirty. how is it that we don't act our age? [ marcie you keep us young. [ kurt we were having too much fun we weren't thinking about a will at that time. we have responsibilities to the kids and ourselves. we're the vargos and we created our wills on legalzoom. finally. [ laughter [ shapiro we created legalzoom
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>> >> chris: we are back with the panel continuing our discussion about the debt negotiations and i have to say, bret, the most interesting aspect of this both from boehner and geithner, was that neither of them was willing to put the final nail in the coffin to the bargain. geithner left it open and boehner said my deal, prior to the president demanding 400 billion more is still on the table. do you take that seriously? >> i do. i think they are willing but the obstacle to it are too great and time is too short to get to this.
first of all, the components are numerous and the amount of legislation to get it done is extensive and i don't think it is feasible. we will need to do something ahead of that to get it done. the other thing that is striking. the rating's agencies issuing dire warning. remember we need to enact something that keeps the government for a while, and they will have plenty more bites to the apple. the senate never passed anything. there is no budget . you know, there will be another day of reckoning down the road. this is simply a measure to keep the government open for a while. there is no real budget. we have a long way to go and fighting the fight again and again. house republicans would be wise to take what we can get on this and go along with our leader
which only word i have for the republicans and the thing to worry about. you pass a short-term six months or so bill that keeps the government going and spending cuts, and reject it by the senate and/or veto-ed by the president and we have a hut down even though the senate hasn't passed anything and the president hasn't presented anything specific . house body is the only body that has acted and still the scenaro in the clinton yearrs plays out again for the republicans to get all of the blame. >> i want to go back to the question about the grandd bargain. do you think it is possible. boehner said it is hard to put humpty dumpy back together again, but maybe i am reading too much into it. were suggesting going back to last sunday when boehner and geithner were sitting in the
bill dally's office and in the white house and coming close to an agreement and talking about major entitlement cuts. do you think it is possible to put it together. >> i think it is possible. the president would agree to a short-term debt ceiling increase if they knew they were in the table and in agreement about putting the details together. what you have seen several times since friday is statements from the administration officials saying it was not a final number. they were use as a bargaining chip. they are trying to say they are sorry and if they put 400 out there as negotiating. >> chris: that's not what boehner said. >> it makes me believe that if the administration backs down to final 400 and tick with 800. boehner may come back to the table. the question of short-term patch
even if it takes long months keeps default alive and that is a problem for the republicans. they read the poling that americans are increasingly afraid of default. it was 70 percent against raising the debt ceiling and now we have a poorer reality. >> >> chris: republicans don't want to get it past the election. >> i think republicans want to get it. i didn't want to talk one of these votes and i don't want to take three of them. the question of going back to the grand bargain. a lot of the republicans say no tax increases with the base lines and all kinds of stuff . boehner, speaker of the house agreeing to 800 billion in new revenue coming from tax reform and closing loop holes. will he sell that in his caucus. >> rejection of economic growth. i don't know if he could have
sold that. speaker boehner thought there was a chance to make long-term progress and he was proven to be wrong by the president . the republicans passed the only legislation that lifted the debt ceiling is pass the two-step legislation that the peeker is looking at and i don't believe democrats can resist that. i am i believe the republicans are going to do the right theng. what they can do is get spending cuts and not allow tax increases and lay the ground work for 2012 and election of a president who is willing to get serious about the debt and deficit. >> part of the sticking point is the mechanisms in place with the two-step solution both speaker boehner and tim geithner talked about this morn how would you enforce the idea of a commission with 12 members in place and said we want you to reform
medicare and make the big cuts. what do you say to them if they don't make the cuts? what have we seen. these guys don't make a deal. why would they make it down the road? you need trust and both sides political extremes are blocking the deal. both sides say no tax cut no cuts to entitlement. >> chris: the triggers they are talking about the and the trigger for the republicans was going to be the decoupling of the bush tax cuts and they wanted the trigger for the democrats to be obama mandate. >> they are extreme. what kind of mechanisms would you have? >> chris:, panel. see you all next week and we'll be right back.